Need help on ULIP management – I bought 3 ULIPS !

POSTED BY S T ON May 26, 2014 6:59 pm COMMENTS (9)

Hello All,

Due to lack of knowledge in financial instrument, have made a mistake of purchasing 3 ULIP in the past.

1.ICICI Life Time Super which was started in year 2007, with annual premium of 20000, which have paid till date.

2.Aviva Save Guard which was started in year 2007, with annual premium of 24000, which have paid till date.

3.Bharthi Axa Bright Stars edge – 5000/PM, which was started in year 2010 and paid all premium till date.

I can see the returns are not much and like mentioned in all threads, lot of charges are involved in.

My question, is once the lock in period are over, is it best advise to close these ULIPs or keep only one good ULIP and close rest and invest that amount in PPF/other retirement products?

Many thanks for your advice.

9 replies on this article “Need help on ULIP management – I bought 3 ULIPS !”

  1. Senthil T says:

    Hi Hemanth,

    Sorry, have a further query. In the above product and associated return, I see ICICI has given 10.45% tax free return which scores over traditional RD (9%)/FD (8.5%) and also over debt products which have an average return of 8.5. The only drawback i see where it has scored less when compared to Mutual, which would have outperformed.

    Given the returns is it advisable to have this product in one’s protfolio as debt instrument?


  2. Senthil T says:


    Many thanks for letting me know about the XIRR function, i just tried it and its really awesome. IF you had just given me the ROI without mentioning XIRR, I would have been still clueless, for any future calculation.

    Thanks again, i am glad that I am part of JI.


    1. Hemanth Chandra says:


  3. Senthil T says:

    Thanks Hemanth for your valuable inputs. Just found out that Barathi Axa plan has a lock in period of 5 years, of which I have completed 4 years now. I will stop paying the premium for next 1 year and get my returns at end of 5 years.

    Reg. term plan, I read posts from JI and planning to take either LIC/HDFC for a period of 30 years, which should cover me until I am 62 years.


  4. Hemanth Chandra says:

    These are the ROI that you got from your 3 funds.

    1. 10.45
    2. 4.81
    3. 7.58 (approx.)

    You can calculate this by using XIRR function in Excel.

    Please opt out of 1 and 3 now as you have got OK returns from them.

    For 2, wait for 1-2 months as this might increase a bit. (as the returns in this is very less try holding for 1-2 months)

    Before opting from these, please take a term plan for good amount.


  5. Senthil T says:


    The below are the details:

    ICICI – Started on 2007 with annual premium of 20K
    Current Value:2,41,800.388
    Invested: 1,60,000

    Aviva – Started on 2007 with annual premium of 24K
    Current Value:2,31,922
    Invested: 1,92,000

    Barathi axa – Started on Oct 2010 with montly premium of 5K
    Current Value: 2,56,118.89
    Invested: 2,20,000


  6. Hemanth Chandra says:

    For insurance, you better use term plans, which are far better than ULIPs

    1. Senthil T says:

      Thanks Hemanth, I do have life insurance from LIC and medical insurance from my employer, but had bought these product out of my ignorance.

      Since the market is good and have completed the mandatory 3 year lock in, my question was around should i hold on to these product for long time or sell them now and invest that amount in PPF /use it as emergency fund?


      1. Hemanth Chandra says:

        What is the ROI that you are getting if you sell these products now.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.